In the Philippines, this Act, which was approved on April 12th, 2019, lays out strategies for boosting energy efficiency and lowering usage, a couple of rules. The Department of Energy will be responsible for carrying out the law’s provisions and placing obligations on other government agencies. The Department of Energy will be given a variety of additional mandates. The creation of an inter-agency committee on energy efficiency. In line with the statute, the Department of Energy will develop new performance and labeling standards. The act also encourages the provision of concessionary loans for energy efficiency solutions and provides provisions for financial and other incentives.
After several years, there is an increasing force in the enforcement. On May 24, 2019, the Energy Efficiency and Conservation (EE&C) law finally went into effect thanks to Republic Act No. 11285, and compliance is now required. The Manila Electric Co. (Meralco) sponsored a discussion on June 28, 2019, with the theme “Gearing Up for the Energy Efficiency & Conservation Law” – to aid in understanding and support for this bill.
With that, here’s what you need to know about the Energy Efficiency and Conservation Act.
What is Republic Act No. 11285 or the Energy Efficiency and Conservation Act?
This establishes energy efficiency and conservation as a national way of life geared toward the efficient and judicious use of energy by formulating, developing, and implementing energy efficiency and conservation plans and programs to ensure sufficiency and stability of energy supply in the country to cushion the impact of high imported fuel prices on local markets and protect the environment in support of the country’s economic and social development goals.
The Energy Efficiency and Conservation Act also has the following benefits:
- Champions the use and development of efficient renewable technologies
- Institutionalizes energy conservation and efficiency to ensure an energy supply that’s stable and sufficient
- Ensures a market-driven approach to conservation and efficiency
- Reinforces laws that are the related to the EEC Act for a comprehensive approach across different energy-consuming sectors
The law encourages the development and use of efficient renewable energy technologies and systems to ensure the best possible use and sustainability of the country’s energy resources, as well as reinforcing related laws and other statutory provisions to ensure the country’s comprehensive approach to energy efficiency, conservation, sufficiency, and sustainability; and also ensures that energy is approached in a market-driven manner.
3 Key Points to Know About the EEC Act
Conservation and Energy Work Together
The act seeks to institutionalize energy efficiency and conservation as a nationwide standard of living aimed toward the efficient and judicious utilization of energy by formulating, developing, and implementing energy efficiency and conservation plans and programs. The primary goals of the law are clear: to ensure a sufficient and stable energy supply, to mitigate the impact of high imported-fuel prices, and to protect the environment in support of Philippine economic and social development goals.
Non-Compliance Can Lead to Penalties
The primary goal of the previous law was to encourage energy conservation measures. The EE&C law, as stated in Section 2-a of the law, gives the regulation teeth. To discourage companies from simply absorbing the cost of fines rather than complying, this same new law increases the number of penalties that must be paid and includes mandatory jail time. Persons or entities who violate any provision of the law, its implementing rules and regulations, or other related issues may face fines and penalties imposed by the Department of Energy (DoE). Meanwhile, responsible officers and employees of any establishment or organization that knowingly commits any of the prohibited acts listed in Section 30 of the law will face criminal charges.
Tax Deductions and Incentives Await Those Who Comply
For the next ten years, the Board of Investments will include energy efficiency projects in all of their investment priorities plans. Incentives such as income tax holidays and duty-free imports are also available. Article 32 (1) of Executive Order No. 226 is waived for energy efficiency (EE) projects under the law (The Omnibus Investment Code of 1987). This means that EE projects can benefit from incentives regardless of the nationality of the company’s ownership. Furthermore, companies implementing EE projects may be eligible for non-financial incentives, such as government agency technical assistance, in the development and promotion of energy-efficient technologies.
All in all, what are the benefits of following this law? Environmentally, increased efficiency can reduce greenhouse gas (GHG) emissions and other pollutants, as well as water use. Economic: Improving energy efficiency can reduce individual utility bills, create jobs, and aid in the stabilization of electricity prices and volatility. Improving annual energy consumption is critical for any business. Depending on the needs of the organization, ESCOs can assist establishments with recommendations for more energy-saving practices, such as purchasing high-efficiency lighting, efficient motors, energy management systems, and more. Why is it critical to understand energy efficiency? Energy efficiency is one of the simplest and most cost-effective ways to combat climate change, reduce energy costs for consumers, and boost the competitiveness of US businesses. Energy efficiency is also a critical component in achieving net-zero carbon dioxide emissions through decarbonization. Why will this help the environment? Energy efficiency has several environmental advantages. It significantly reduces GHG emissions, both direct emissions from fossil fuel combustion or consumption and indirect emissions reductions from electricity generation.
We hope you learned something from this! We wish you well on your journey to understanding and applying this act.
Do you want to see more content like this in the future? Subscribe to Pinoy Builders for FREE today and stay in the loop for the latest news and updates on the Philippine construction industry!
- Department of Energy. (2023). Department of Energy. https://www.doe.gov.ph/eec-act-primer?withshield=1
- de Jesus, M. (2019, July). 7 Key Points You Need To Know About The Energy Efficiency And Conservation Law. Www.powerclub.com.ph. https://www.powerclub.com.ph/spark-of-hope/7-key-points-you-need-to-know-about-the-energy-efficiency-and-conservation-law-a1-20190717-lfrm
- Republic Act No. 11285. (n.d.). Lawphil.net. https://lawphil.net/statutes/repacts/ra2019/ra_11285_2019.html
- Vizzuality. (n.d.). Republic Act No. 11285 (Ene… – Philippines – Climate Change Laws of the World. Climate-Laws.org. https://climate-laws.org/geographies/philippines/laws/republic-act-no-11285-energy-efficiency-and-conservation-act
- IEA. (2019). Emissions savings – Multiple Benefits of Energy Efficiency – Analysis. IEA. https://www.iea.org/reports/multiple-benefits-of-energy-efficiency/emissions-savings
- The Energy Efficiency and Conservation Act: Everything You Need to Know. (n.d.). Santos Knight Frank. https://santosknightfrank.com/blogs/the-energy-efficiency-and-conservation-act-everything-you-need-to-know/#:~:text=Improving%20annual%20energy%20consumption%20is